This week, the Least Developed Countries Report, Entrepreneurship for Structural Transformation: Beyond Business as Usual, published by the UN, stated that, “At the centre of radical economic change is transformational entrepreneurship.”
“Transformational entrepreneurship generates many of the social and economic innovations that underpin sustainable development. Transformational entrepreneurs create new products and business models; they offer dignified employment.”
The report highlights that self-employment is the most significant employer in the world’s 47 least developed countries (LDCs), reflecting 70% of employment. In other developing countries the number drops to 50%, whilst in developed countries it is only 14%.
Highlighting a trend for small businesses, the report identifies a ‘missing middle’; 58% of firms in the LDCs employ between 5 and 20 people, and 12% over 100, however, medium-sized firms employing between 20 to 100 people represent just under a third of businesses (29%). The report highlights that initiatives and policy supporting firms to break into this ‘missing middle’ would make a substantial impact quality of life in these regions.